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Powell Industries, Inc. (POWL) Hits Fresh High: Is There Still Room to Run?
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A strong stock as of late has been Powell Industries (POWL - Free Report) . Shares have been marching higher, with the stock up 25.4% over the past month. The stock hit a new 52-week high of $367.48 in the previous session. Powell Industries has gained 64.7% since the start of the year compared to the 5.9% gain for the Zacks Industrial Products sector and the 11.5% return for the Zacks Manufacturing - Electronics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 5, 2025, Powell Industries reported EPS of $3.96 versus consensus estimate of $3.73 while it missed the consensus revenue estimate by 3%.
For the current fiscal year, Powell Industries is expected to post earnings of $14.94 per share on $1.1 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $15.81 per share on $1.17 in revenues. This represents a year-over-year change of 3.82% and 6.55%, respectively.
Valuation Metrics
While Powell Industries has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Powell Industries has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.9X. On a trailing cash flow basis, the stock currently trades at 27.9X versus its peer group's average of 26X. Additionally, the stock has a PEG ratio of 1.75. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Powell Industries currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Powell Industries meets the list of requirements. Thus, it seems as though Powell Industries shares could have a bit more room to run in the near term.
How Does POWL Stack Up to the Competition?
Shares of POWL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Franklin Electric Co., Inc. (FELE - Free Report) . FELE has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Franklin Electric Co., Inc. beat our consensus estimate by 2.34%, and for the current fiscal year, FELE is expected to post earnings of $4.16 per share on revenue of $2.12 billion.
Shares of Franklin Electric Co., Inc. have gained 3.9% over the past month, and currently trade at a forward P/E of 23.76X and a P/CF of 19.09X.
The Manufacturing - Electronics industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for POWL and FELE, even beyond their own solid fundamental situation.
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Powell Industries, Inc. (POWL) Hits Fresh High: Is There Still Room to Run?
A strong stock as of late has been Powell Industries (POWL - Free Report) . Shares have been marching higher, with the stock up 25.4% over the past month. The stock hit a new 52-week high of $367.48 in the previous session. Powell Industries has gained 64.7% since the start of the year compared to the 5.9% gain for the Zacks Industrial Products sector and the 11.5% return for the Zacks Manufacturing - Electronics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 5, 2025, Powell Industries reported EPS of $3.96 versus consensus estimate of $3.73 while it missed the consensus revenue estimate by 3%.
For the current fiscal year, Powell Industries is expected to post earnings of $14.94 per share on $1.1 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $15.81 per share on $1.17 in revenues. This represents a year-over-year change of 3.82% and 6.55%, respectively.
Valuation Metrics
While Powell Industries has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Powell Industries has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.9X. On a trailing cash flow basis, the stock currently trades at 27.9X versus its peer group's average of 26X. Additionally, the stock has a PEG ratio of 1.75. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Powell Industries currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Powell Industries meets the list of requirements. Thus, it seems as though Powell Industries shares could have a bit more room to run in the near term.
How Does POWL Stack Up to the Competition?
Shares of POWL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Franklin Electric Co., Inc. (FELE - Free Report) . FELE has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Franklin Electric Co., Inc. beat our consensus estimate by 2.34%, and for the current fiscal year, FELE is expected to post earnings of $4.16 per share on revenue of $2.12 billion.
Shares of Franklin Electric Co., Inc. have gained 3.9% over the past month, and currently trade at a forward P/E of 23.76X and a P/CF of 19.09X.
The Manufacturing - Electronics industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for POWL and FELE, even beyond their own solid fundamental situation.